Cardano co-founder Charles Hoskinson has proposed converting $100 million worth of ADA tokens into Bitcoin and stablecoins.
“We could take $100 million of ADA in the treasury, convert it to a mix of stablecoins prevalent in Cardano like USDM and USDA, and convert some into Bitcoin to enhance Bitcoin DeFi,” Hoskinson mentioned during a live stream.
He responded to critics who claimed the $100 million sale would affect the ADA price, labeling them “inexperienced” and asserting that the sale “would not cause any issues at all.”
The purpose of the sale would be to increase the ratio of stablecoin issuance and total value locked (TVL) to about 30% to 40%, compared to the current approximately 10%.
The total value locked on Cardano is at $356 million with only $31 million worth of stablecoins minted on-chain, as shown by data from DefiLlama.
In contrast, Solana boasts $9.8 billion in TVL and $11 billion worth of stablecoins minted on-chain.
In a tweet, Hoskinson expressed that the stablecoin situation is “hindering Cardano” and that the proposal would generate “non-inflationary revenue” aiding the growth of the Cardano DeFi economy.
Hoskinson’s views contrast with those of Cardano Foundation CEO Frederik Gregaard, who stated that TVL is not a metric he considers for adoption.
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